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401 Key Terms

Role of Finance/Accounting

TermDefinition
Accounting the process of keeping and interpreting financial records
accounts payable all monies owed by the business to others
accounts receivable all monies owed to a firm by its customers
acquisition of funds finance activity involving making decisions about financing
administration of assets finance activity involving making decisions about a firm's investments
asset(s) anything of value that a business or individual owns
capital budgeting a process in which of firm's financial managers determine which projects it should invest in
capital investment decisions decisions that determine which projexts a business will invest in, how the investments will be financed and whether to pay dividends to shareholders
capital structure a firm's mix of financing, usually some combination of debt and equity
cash conversion cycle ratio that refers to the number of days between a company paying for raw materials and receiving cash from selling the products made from those raw materials
debt funding using money that is lent by a bank or other institution to finance a project
dividend a sum of money paid to an investors or stockholders as earnings on an investment.
Created by: christopher.d936
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